KEY STEPS

The groundbreaking
Sustainable Energy Finance (SEF) Program is the first of its kind in the Philippines and is
paving the way for more private financial sector investment in sustainable energy projects. These
projects are reducing greenhouse emissions, improving energy security and boosting economic
development in the Philippines. The SEF is an advisory programme being implemented by the International
Finance Corporation in different regions around the world.

Fast facts:

USD 326 million financed for sustainable energy projects as of December 2012;

The Philippines SEF Program has catalyzed investments in 66 sustainable energy projects, which
will cut CO2 emissions by more than 740,000 tonnes a year;

Financing for energy efficient technologies can reduce a company’s operating and energy
expenses by at least 30 per cent and cut CO2 emissions by at least 25,000 tonnes each year.

The Philippines has been experiencing rising power costs, growing demand for energy, looming power
shortages and an increasing concern for environmental sustainability due to the country’s
vulnerability to climate change. Compounding the country’s vulnerability was the lack of available
financing for energy efficiency and renewable energy projects in the country.

The solution

The SEF Program is an innovative solution that supports private banks through capacity building,
technical evaluation and product development to help them finance energy efficiency and renewable
energy projects. The SEF Program has helped change the traditional way private banks view energy
efficiency and renewable energy investments — no longer just for corporate social
responsibility, these investments increase shareholder value.

Companies can apply for loans at select Philippine banks through the SEF Program, which allows them
to invest in technologies that make energy generation, distribution and use more efficient. These
technologies can reduce a company’s operating and energy expenses by at least 30 per cent and
cut CO2 emissions by at least 25,000 tonnes each year.

Helping the planet

The Philippines SEF Program has catalyzed investments in 66 sustainable energy projects, which will
reduce more than 700,000 tonnes of CO2 each year. Eligible projects include energy efficiency
measures in buildings (retrofit or replacement of lighting, space cooling, air compression and
building management systems) and industrial/manufacturing processes (boiler upgrades, motors and
manufacturing equipment).

BPI, a partner bank, decided to “walk the talk,” proving that even small actions can
have a big effect. It replaced its 30-year-old space cooking units at its headquarter building. As a
result, BPI’s electric bill dropped by USD 25,000 a month.

Spillover effect

The SEF Program’s technical assistance package and risk-sharing facility model is highly replicable
and can be tailored to respond to a bank’s needs. The model also supports a bank’s strategy,
strengths and portfolio characteristics. Two of the largest banks (BPI and BDO) in the Philippines have
participated in this programme, catalyzing the sector.